Recruiting fees often depend on the placement model. Everhour keeps billable and non-billable recruiting work separated by client and project.
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Use this page when you need a client invoice for permanent placement, retained executive search, contract staffing, outplacement, outsourcing, or HR consulting work. A recruiter invoice should identify the client, candidate or role, engagement reference, invoice date, invoice number, payment terms, line items, taxes if applicable, and remittance details.
For direct-hire recruiting, the invoice commonly follows a successful hire. Employer-paid placement fees are the more common arrangement, so the hiring company pays the agency and the employee pays nothing for the placement. A clear invoice should connect the charge to the accepted candidate, start date, salary basis, and the fee percentage or fixed fee stated in the agreement.
Direct-hire recruiter commissions are commonly expressed as 20% to 30% of the new hire's first-year salary. Management-executive search fees are often described as 25% to 35% of initial annual salary, with senior executive searches sometimes higher. Your invoice should show the salary basis, fee percentage, and placement trigger instead of leaving the client to infer the math.
Retained executive search needs a different structure. A written engagement should cover scope, timing, fees, payment schedule, deliverables, guarantees, off-limits, conflicts, and data management. Invoices usually follow that schedule, such as an upfront retainer, a shortlist milestone, and a final placement fee. Temporary or contract staffing invoices usually use recurring labor charges by worker, role, week, hours, or agreed billing period.
Recruiter invoice disputes often start when the invoice does not match the signed engagement. Name the role, candidate, requisition, department, hiring manager, and placement date when those details support approval. For retained search, reference the milestone. For staffing, separate labor, markup, expenses, and any client-approved pass-through costs when the agreement uses those categories.
Private-sector invoices in the United States do not follow one prescribed federal invoice form, and the United States does not use a national VAT or GST invoice regime. Sales and use tax treatment depends on state and local rules, nexus, the service type, and the place of sale. If tax applies, label the sales-tax line by jurisdiction and keep state seller permit or sales-tax account details where required.
A one-off invoice is enough for a single placement fee, a retained-search installment, or a small consulting project with clear terms. The template should produce a finished document with the right client details, fee trigger, payment terms, and supporting line items. Save the signed engagement and the invoice together because invoices support business records that show income and expenses.
A managed workflow becomes useful when recruiters bill multiple clients, split work across sourcers and account managers, or need to separate billable search activity from internal work. Everhour supports project billing status, task-level non-billable controls, custom task rates, member-rate exceptions, and admin reports for billable time, non-billable time, billable amount, and cost.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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A recruiter invoice should include the engagement type, role or candidate reference, fee basis, invoice date and number, client billing details, payment terms, and remittance instructions. Direct-hire invoices commonly show the placement fee. Retained-search invoices should match the written payment schedule. Staffing invoices should show recurring labor charges by worker, role, period, or agreed billing unit.
Placement invoices commonly show the first-year salary basis when the fee is a percentage of compensation. A direct-hire fee of 20% to 30% of first-year salary is common, so the client needs enough detail to verify the amount. Use the salary definition from the signed agreement, especially when bonuses, allowances, or guarantees affect the fee.
The signed engagement controls the billing trigger. Employment agency placement fees are generally contingent on the employer and candidate agreeing to employment, and headhunter fees are normally paid only when the candidate is hired. Some retained or hybrid searches include an upfront retainer or milestone payments, so those invoices should reference the agreed schedule.
Recruiter invoices in the United States do not use a national VAT or GST invoice regime. Sales and use tax obligations are imposed by states and local jurisdictions. Service taxability varies by state and service type, so the tax line should follow the applicable state and local rules rather than a single national rate.
The most common mistake is sending a generic fee line with no connection to the engagement terms. Add the role, candidate or project reference, fee trigger, payment schedule, and guarantee reference when relevant. For retained executive search, the invoice should align with the written scope, timing, deliverables, and payment schedule.
Everhour lets admins set project billing status, mark specific tasks as non-billable, apply custom task rates, and use member-rate exceptions. Admin reports can show billable time, non-billable time, billable amount, and cost, so recruiting teams can keep client-ready work separate from internal sourcing and admin time.
Everhour Billing & Invoicing converts tracked billable time and expenses into client invoices. Teams can select uninvoiced time, preview the breakdown, group invoice lines by project, task, person, or date, and keep already-invoiced time from appearing again on a future invoice.
Track billable recruiting work by client, role, and project. Everhour separates non-billable tasks from invoiceable work, giving recruiting teams clearer billing records and cleaner client invoices.
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